Corporate Tax Consultants in Dubai

UAE Corporate Tax is levied at 0% on taxable income up to AED 375,000 and 9% on taxable income above AED 375,000. A separate higher rate (15%) applies to multinational enterprises with global consolidated revenue exceeding EUR 750 million under the OECD Pillar Two framework. Qualifying Free Zone Persons may continue to benefit from 0% on qualifying income, subject to specific conditions.

Your Corporate Tax return must be filed within 9 months from the end of your tax period. For a financial year ending 31 December 2024, the filing deadline is 30 September 2025. Tax payment is due on the same date as the return filing. Late filing penalties start at AED 500 per month for the first 12 months and increase thereafter.

Yes. All Taxable Persons in the UAE — including mainland LLCs, Free Zone companies, branches, and natural persons conducting business — are required to register for Corporate Tax with the Federal Tax Authority (FTA), regardless of income level. Registration is mandatory even if your business currently earns below the AED 375,000 threshold. Late registration triggers a penalty of AED 10,000.

A Qualifying Free Zone Person (QFZP) is a UAE Free Zone entity that meets specific conditions allowing them to apply 0% Corporate Tax on qualifying income. To qualify, the entity must: (1) maintain adequate substance in the Free Zone, (2) earn qualifying income from qualifying activities listed in Ministerial Decision 229/2025, (3) comply with transfer pricing rules, (4) not exceed the de minimis threshold for non-qualifying income, and (5) prepare audited financial statements. Non-qualifying income is taxed at the standard 9% rate.

Free Zone companies in the UAE are subject to Corporate Tax, but those qualifying as QFZPs can apply 0% on qualifying income. All Free Zone businesses must register with the FTA, file Corporate Tax returns annually, and maintain audited financial statements. Non-qualifying income earned by a Free Zone entity is taxed at 9%.

Small Business Relief (SBR) allows UAE businesses with annual revenue not exceeding AED 3 million to elect treatment as having no taxable income. This effectively means 0% Corporate Tax for qualifying small businesses. The relief is available for tax periods ending on or before 31 December 2026 and must be elected on the CT return. Free Zone Persons and Qualifying Free Zone Persons cannot claim Small Business Relief.

UAE Taxable Persons must maintain accounting records and supporting documents for a minimum of 7 years from the end of the relevant tax period. This includes financial statements, general ledgers, sales and purchase invoices, contracts, and transfer pricing documentation. Records may be kept electronically. Failure to maintain records triggers an AED 10,000 penalty for the first offence and AED 50,000 for repeat violations.

Dividends from qualifying shareholdings are exempt from UAE Corporate Tax under the Participation Exemption. To qualify, the parent company must hold at least 5% of the share capital, intend to hold for 12 months, and the subsidiary must be subject to Corporate Tax in its jurisdiction at a rate of at least 9% (or be exempt under specific conditions). Dividends from UAE resident companies are exempt without conditions.

Transfer Pricing (TP) rules require all transactions between related parties (including group companies) to be conducted at arm's length — meaning prices comparable to those charged between independent parties. UAE TP rules apply to all Taxable Persons, with documentation requirements (Master File, Local File, disclosure forms) triggered when group revenue exceeds AED 200 million or related-party transactions exceed AED 40 million. Non-compliance can lead to TP adjustments, increased tax, and penalties.

Yes. UAE-resident companies under 95% common ownership can elect to form a Tax Group and file a single consolidated Corporate Tax return. This allows offsetting of profits and losses across group members and elimination of intercompany transactions for CT purposes. All members must have the same financial year and be UAE resident. Tax Group formation requires FTA approval and continues until the group is dissolved or conditions are no longer met.

Generally, expenses incurred wholly and exclusively for the purpose of the business are deductible. This includes salaries, rent, utilities, depreciation, interest (subject to thin capitalization rules), and bad debts. Non-deductible expenses include: bribes, fines and penalties, donations to non-qualifying entities, dividends paid, 50% of entertainment expenses, and expenses related to exempt income. Specific deductibility rules apply to interest expenses and related-party transactions.

UAE Corporate Tax is calculated on Taxable Income — accounting profit per IFRS-compliant financial statements, adjusted for tax-specific rules. Adjustments include: adding back non-deductible expenses, removing exempt income (qualifying dividends, capital gains), depreciation differences, and provisions. The 9% rate applies to taxable income above AED 375,000. Free Zone qualifying income is taxed at 0%.

Yes. Branches of foreign companies operating in the UAE are treated as Taxable Persons and must register, file annual returns, and pay Corporate Tax on income attributable to the UAE Permanent Establishment. The same 0% / 9% rates apply. Foreign branches must determine their taxable profit using arm's length principles and transfer pricing rules where transactions occur with the head office or related entities.

An FTA-approved Tax Agent is a professional or firm officially licensed by the UAE Federal Tax Authority to represent taxpayers in tax matters. Tax Agents can: register clients for Corporate Tax and VAT, prepare and submit returns, respond to FTA queries, file voluntary disclosures, and represent clients in audits. Saif Chartered Accountants holds Tax Agency Number (TAN) 30004113. Working with a registered Tax Agent provides legal recourse and accountability.

Yes. Tax losses can be carried forward indefinitely and offset against future taxable income, subject to a maximum of 75% of taxable income in any given year. Losses can also be transferred between Tax Group members. Losses cannot be carried back to prior periods. Loss utilization is subject to ownership continuity rules — major changes in ownership (50%+) may restrict loss utilization.

Yes. The following are exempt from UAE Corporate Tax: government and government-controlled entities, extractive businesses (oil, gas, mining), non-extractive natural resource businesses, qualifying public benefit entities, qualifying investment funds, regulated UAE pension and social security funds, and wholly government-owned UAE social security or pension funds. Most exemptions require specific approval or registration with the FTA.

UAE Corporate Tax and VAT are separate tax regimes. VAT applies at 5% on taxable supplies of goods and services. Corporate Tax applies at 9% on business profits. VAT is generally not included in Corporate Tax computations as input/output VAT is a balance sheet item. Businesses registered for VAT must also register for Corporate Tax. Both taxes are administered by the FTA but have separate compliance obligations.

Missing the Corporate Tax registration deadline triggers an administrative penalty of AED 10,000. Additionally, late filing of returns or payment of tax leads to additional penalties — AED 500 per month for the first 12 months of late filing, then AED 1,000 per month thereafter, plus 14% annual interest on unpaid tax. Voluntary disclosure before FTA discovery may reduce penalties significantly. Contact our Tax Agents urgently if you've missed any deadline.

Most engagements begin within 48 hours of initial contact. Our process: (1) free 60-minute consultation to scope your needs, (2) written engagement letter and fee proposal within 24 hours, (3) signing and onboarding within 2-3 business days. CT registration typically completes within 20 business days; full annual compliance engagements run 6-10 weeks depending on complexity. Reach us via phone, WhatsApp, email, or our contact form.

Saif Chartered Accountants combines: (1) FTA-registered Tax Agent status (TAN 30004113) — direct legal representation, (2) 30+ years of UAE practice since 1994, (3) DMCC Approved Auditor (Account #148497) — integrated audit and CT delivery, (4) Dubai Municipality ICV Auditor appointment, (5) SGA World International network for cross-border CT support, and (6) 4.9★ rating from 78+ verified Google reviews. Our partners hold Chartered Accountant qualifications recognized internationally, and our clients range from SMEs to multinational groups across Dubai, Abu Dhabi, and Sharjah.